BPOW reports 36% increase in year end net profit

June 21, 2019

 

Blue Power Group Limited (BPOW) for the year ended April 30, 2019  recorded an increase in revenues  by 10% to $1.67 billion relative to $1.51 billion recorded in 2018. For the quarter, revenue increased 10% from $358.01 million in 2018 to $394.84 million.  The company indicated, “Overall sales for the twelve months are up by 10% from $1,508 million to $1,666 million with the Lumber Depot Division showing an increase of 12% while the Blue Power Division improved by 6%.”

The Company also noted, “Results for the 4th quarter in terms of sales for both divisions were positive with an overall increase of 13.9% where the Lumber Depot Division showed an increase of 26.29% while the Blue Power Division declined by 15.08%.” Management also noted, “Export sales for the full year were ahead of last year by 29% although there was a decline in the fourth quarter.”

Cost of Sales for the period increased by 9% to $1.29 billion (2018: $1.84 billion). As such, gross profit increased by 17% to $377.24 million (2018: $323.13 million). For the fourth quarter, cost of sales climbed by 9% to $313.22 million (2018: $286.69 million); consequently gross profit for the quarter increased 14% to $81.63 million (2018: $71.41 million)

Administrative Expenses amounted  to $243.33 million, a 15% increase relative to $210.72 million last year. Consequently, Operating Profit totalled $133.91 million, 19% more than the $112.42 million for the prior year’s period.

Finance Income amounted to $29.33 million (2018: $14.86 million), while Finance Cost totalled $6.19 million (2018: $14.80 million) for the year end. As such, Profit before taxation increased by 37% to $158.99 million relative to $115.93 million for the corresponding period last year.

The company reported a 44% increase in taxes in the year to $19.72 million compared to the $13.69 million paid in the prior year. As a result, Net Profit increased by 36% to $139.27 million (2018: $102.24 million). Net profit for the quarter totalled $19.31 million relative to $22.97 million the prior year’s quarter.

Earnings-per-share for the period amounted to $0.25 (2018:$0.18), while earnings-per-share for the quarter amounted to $0.03 (2018:$0.04). The amount of shares used in our calculation is 564,990,000. Notably,BPOW stock price closed the trading period on June 21, 2019 at $4.48.

Management noted, “We will see positive results from two new initiatives in the area of soap production as we launch new products in June and July of 2019. With respect to activity in the construction sector, our sales will increase as the economy experiences a boom in building activity. We continue to work patiently with our customers to supply cement which has been in short supply recently.”

 

Balance Sheet Highlights:

The company, as at April 30, 2019, recorded total assets of $982.69 million, an increase of 9% when compared to $904.36 million recorded last year. This was as a result of the Company booking ‘Investment” of $197.54 million relative to $148.50 million reported the prior year. Inventories also recorded an increase by $31.17 million to close at $321.19 million relative to $290.02 million recorded as at April 20, 2018. This was however tempered by the $11.29 million decline in ‘Cash and Cash Equivalents’ to $176.79 million (2018: $188.08 million).

Total Stockholders’ Equity as at April 30, 2019 closed at $897.66 million (2018: $762.74 million). This resulted in a book value of $1.59 (2018: $1.35).

 

 

Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.

 

2019-06-21T21:56:48+00:00